HOUSTON – (Realty News Report) – Stage Stores, the Houston-based retailer that operates stores under the Palais Royal, Bealls and Gordmans names, filed for Chapter 11 bankruptcy protection on Sunday.
The company closed its stores at the end of March amid the COVID-19 pandemic. At the time, the chain operated 738 locations. Thousands of employees were furloughed without pay, including staff at the company’s headquarters at 2425 West Loop near Westheimer Road. Founded in the 1920s, Stage Stores reported 13,600 employees as of February 2019.
Stage announced plans to reopen 557 stores on May 15, another 67 stores on May 28, and the remaining locations on June 4.
In a statement, Stage said it intends to seek buyers for the business or for individual assets as part of the bankruptcy process.
The Chapter 11 filing was made in Houston with legal counsel from Kirkland & Ellis. Other advisors working with the company include A&G Real Estate Partners, the PJ Solomon investment bank, and Berkeley Research Group.
Michael Glazer, President and Chief Executive Officer, said, “This is an extremely difficult announcement and a decision we reached only after exhausting every alternative. Over recent months we took significant steps to improve our financial position and pursue a standalone path forward. However, the already challenging market conditions were intensified by the COVID-19 pandemic, which forced us to temporarily close all our stores and furlough the majority of our associates. Under these circumstances, we were unable to secure necessary financing and had no choice but to take this action.”
May 11, 2020 Realty News Report Copyright 2020